Industrial production in Spain recovers

The European car industry collapsed with Trump administration's tariffs

Industrial Production in Spain rebounded strongly in August. Specifically, it advanced to + 1.7% a / avs. + 0.6% estimated and + 1.2% above (revised upwards from + 0.8%).

According to analysts at Bankinter, the data is positive. The indicator regained ground in August after the previous month’s decline (up to + 1.2% from + 1.6% earlier). Concerns about the impact that protectionism and the slowdown of growth are currently having on the Spanish industrial sector are thus moderated.

Also, industrial production data has been released in Germany, which fell by -4.0% in August vs. -4.3% estimated and -4.2% prior. Although the data is better than estimated and confirms a slight path of recovery in the indicator (June -4.7%, July -4.2% and August -4.0%). However, the record remains clearly weak and shows the impact that the commercial war, and the slowdown in global growth, have on the German industrial sector.

A matter of concern about its weight on the country’s GDP. In this regard, it is worth recalling the recent cut in growth estimates of the German Government Advisory Council (the “five wise men”) just a few days ago. Specifically, they reduced their forecast to + 0.5% in 2019 (from + 0.8% previously) and to + 1.1% in 2020 (from + 1.8% previously

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.